EURUSD Weekly Forecast – 02.02.2015 To 02.06.2015
EURUSD continued to struggle and failed to break the 1.1400 resistance area. There is a monster bearish trend line on the weekly chart, which acted as a barrier for buyers on more than two occasions. Currently, the highlighted trend line is coinciding with the 38.2% Fibonacci retracement level of the last drop from the 1.1977 high to 1.1103 low. On the downside, it looks like the EURUSD pair is forming a major support around 1.1300. However, the weekly RSI is still pointing weakness, as it is below the 50 level.
There are several important events lined up this week, including the Euro zone manufacturing and services PMI.
- Euro Zone Manufacturing PMI – Forecast : 51 V/s Previous : 50.6
- German Manufacturing PMI – Forecast : 51 V/s Previous : 51.2
- Euro Zone Services PMI – Forecast : 52.3 V/s Previous : 51.6
- German Services PMI – Forecast : 52.7 V/s Previous : 52.7
- Euro zone retail sales – MoM (Dec) – Forecast : 0.2% V/s Previous : 0.6%
The most important event this week is the US nonfarm payrolls released by the US Department of Labor. The forecast is slated for a gain of 230K jibs, compared with the last reading of 252K. The unemployment rate is forecasted to stay at 5.6%.Moving Ahead
A lot of action might happen this week considering events lined up. On the upside, 1.1420 is an important level in EURUSD and downside 1.1300.